Lottery bosses turned to Condition Security Agency to investigate leaks

Lottery bosses turned to Condition Security Agency to investigate leaks

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Former National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda questioned the Point out Stability Agency (SSA) in December 2018 to research the leaking of documents that uncovered lottery corruption.
The NLC’s organization secretary at some time detailed media reports she claimed had been dependant on “stolen” information within an affidavit for that SSA.
The SSA did examine. It located the knowledge was not a make any difference of point out safety and the “prevalence of alleged corruption and irregularities” gave “enough motive” for that media to reveal it.
A different board and management has since taken around the NLC and To this point have taken steps to end corruption at the establishment.
A State Stability Agency (SSA) investigation observed which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied sufficient motive” for publicity through the media.

The probe into meant “facts protection breaches and sabotage of NLC functions” was carried out right after then-NLC board chairperson Alfred Nevhutanda wrote into the SSA in December 2018 requesting it to investigate.

Here is

Nevhutanda’s letter,
an affidavit by now suspended NLC organization secretary Nompumelelo Nene supporting the request, and
the safety company’s “confidential” findings and proposals.
Nevhutanda requested the SSA to investigate the function of NLC employees in the alleged leaking of knowledge, and Nene, in her affidavit identified specific media and stories that she claimed involved these leaks.

While in the letter outlining its conclusions, the SSA told the NLC that although preserving state details was “a authorized vital directed at defending the sovereignty and integrity on the condition” this only applied to appropriately classified information.

Even though it did not say so straight, the SSA findings implied which the allegedly leaked information and facts didn't drop into this category.

Significantly, the SSA built it crystal clear that the need to secure state information and facts “isn't going to stop any individual from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation found the NLC facts involved in the alleged breach was “sensitive and privileged in nature, but not labeled in terms of the prescripts from the Bare minimum Facts Stability Benchmarks (MISS)”.

“The leakage of the relevant delicate official NLC details for the media doesn't pose a danger to nationwide protection,” the SSA mentioned, adding the effect of the breaches was reputational.

The SSA report observed “no evidence of a factual and incriminating mother nature in opposition to any of the suspected NLC personnel that can be discovered from the information and knowledge interrogated”.

Additionally, it said that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does provide ample motive to possess these kinds of uncovered from the media”.

Conspiracy statements
In 2020, Nevhutanda instructed MPs throughout a session of Parliament’s trade, business and Competitiveness portfolio committee that there was “a conspiracy” through which details “stolen” from your NLC was despatched into the US, wherever he claimed it had been being marketed to fund a smear campaign versus the NLC.

He was repeating very similar promises he had Earlier produced in Parliament, which involved ad hominem attacks on GroundUp and this reporter but was thorough not to call either.

“I came below Within this August residence very last calendar year and claimed to honourable users that information about our beneficiaries is stolen and put in one point out in the usa,” he instructed MPs.

“We called about the Condition Protection Company to return look into the make a difference due to the fact we have been having experiences that our information is generating cash for media platforms and journalists,” he explained. “There was discuss, needless to say from 1 resource, just one media, that spoke Considerably about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but didn't explain to MPs that the SSA investigation had been done Just about a yr previously.

Proactive funding was at the guts in the looting of your lottery. It side-stepped the conventional grant system. The NLC could itself discover a challenge to fund and appoint a non-revenue organisation to oversee it.

Immediately after Nevhutanda to start with advised Parliament in 2018 that he experienced asked the SSA to research the meant breach, the South African National Editors Forum issued a statement stating that his remarks mirrored “an extremely perilous Mindset wherever the media is staying blamed for the NLC’s inherent challenges”.

“As opposed to investigating why hundreds of thousands can't be accounted for, the NLC has as a substitute tried to Solid question around the integrity in the journalists included and has asked the SSA to research their sources.”

Proactive jobs produced key
Protection flaws discovered from the NLC grant funding process in the SSA’s investigation, surface to have been applied as an justification from the NLC to remove all proactive-funded projects from its central grants technique.

“In or about 21 December 2019, the classification of all pro-actively funding initiatives was heightened to ‘key’ and projects were being faraway from the grant funding method and preserved manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Business, Government Manager Authorized as a way to safeguard [the] information,” Nene mentioned in her affidavit.

“There was loads of internal dialogue, with many back and forth, about how to proceed to plug the alleged leaks”, a resource, who was in a very senior situation with the NLC at time, told GroundUp. “Eventually, the decision was taken to eliminate each of the proactive assignments in the procedure and limit usage of a handful of persons”.

Some in that handful of people ended up implicated in corruption.

Maselwa, who resigned in the NLC many years ago, has become implicated in corruption involving lottery resources. He received R4.three-million from lottery resources allotted to make a library and museum complicated in Kuruman (see Taung Cultural Songs and Arts Expo) which he employed to create a property in an upmarket gated improvement in Pretoria. The home is among quite a few paid out for with lottery funds which were frozen following the Asset Forfeiture Unit obtained a preservation buy in December 2022.

The politically-connected Nevhutanda, who was appointed as the NLC board chairperson by previous President Jacob Zuma in 2009 and was near significant-ups within the ANC Management, previous NLC former Commissioner Thabang Mampane, and ex-Main operating officer Phillemon Letwaba, have all been implicated while in the corruption which confused the NLC on their look at.

Also implicated are former board associates William Huma, who resigned soon after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got considering the fact that died.

When a new administration, such as the full board and govt, took about with the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” while in the documentation associated with proactive funding, Significantly of which was paper-primarily based. Crucial documents ended up missing. Documents held for safekeeping by document storage firm Metrofile were signed out and never ever returned.

The NLC was capable of Get well copies of some ตรวจ หวย ลาว files from its Mimecast e mail archiving program and also the laptops in their assistants and help personnel.

News stories
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave concern doable info protection breaches as well as unauthorised use and/or dissemination of confidential details received on account of performing official capabilities in the Commission by NLC workers. The actions are meant to undermine the integrity from the Fee whilst disrupting the helpful functions [with the NLC] and creating insurmountable reputational hurt towards the Commission as being the custodian of private info entrusted to it by its beneficiaries.”

His request for that SSA to analyze was supported within an affidavit by suspended NLC company secretary, Nomphumelelo Nene.

Nene is at present experiencing a disciplinary inquiry just after she was unsuccessful in lawful motion to put aside conclusions of irregular expenditure on her check out.

The goal of her affidavit, Nene claimed, was “to report the functions which transpired associated with details security breaches within the Nationwide Lotteries Commission”.

She mentioned a variety of news stories which she claimed have been the effects of those “breaches” (see at the conclusion of this text).

Nene stated that a whistle-blower approached the NLC alleging that amongst its staff members, Sello Qhino, experienced “provided her categorized NLC Data and persistently inspired her to offer the knowledge to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded assignments in Kuruman immediately after makes an attempt to boost the issue internally were disregarded, was subsequently fired.

Referring to an eighteen November 2018 report while in the Everyday Dispatch regarding the misappropriation of Lottery funds, Nene claimed the NLC discovered and then suspended Zintle Rungqu. She was an personnel within the NLC’s East London office, who was the associate and the mother of whistleblower Mzukise Makatse’s 3 children.

Rungqu and Makatse feel Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and charged internally, With all the NLC paying out R470,000 on legal professionals to stand for it, but was found not responsible and permitted to return to operate.

“The prevalent Consider these content is the fact [they require] labeled details referring to proactive funding initiatives,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out of the household dwelling to take the heat off her and his kids. Dealing with homelessness, he moved into an Business within an empty manufacturing facility belonging to a buddy.

Equally Makatse and Qhino are participating in an NLC reparation approach meant to recognise the harm lots of people endured with the hands in the NLC. Apologies and, in some instances, monetary compensation are predicted.

“Some individuals had been truly impacted pretty negatively by this … This is absolutely distressing,” NLC Commissioner Jodi Scholtz told the Day-to-day Maverick last yr.

“I satisfied a few these persons. It absolutely was just so coronary heart-wrenching that their full life are actually turned the wrong way up,” explained Scholtz.

Amid All those she achieved were being Qhino and Makatse.

Safe System essential for whistleblowers
The SSA located the absence at some time of an appropriate channel for whistleblowers to report corruption led them to show to the media.

“Failure to possess a focused anti-corruption channel will end in staff members presenting this kind of conditions beyond the NLC,” the SSA stated in its conclusions.

“Provided the magnitude of corruption in point out establishments, it continues to be essential that it ensures that the NLC complies with all safety prescripts and that its target is on making certain that unlawful and irregular perform is sufficiently mitigated against and by ensuring an adequate channel for whistle-blowers to report untoward perform without becoming intimidated.”

It suggested that the NLC create a “Risk-free channel” for employees to deliver information on any “untoward exercise” that could not avert or discourage personnel from blowing the whistle. A whistle-blowers policy, according to the Protected Disclosures Act twenty five of 2000, is usually a prerequisite.”

Media reviews Nene mentioned
A 10 December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Physical fitness Centre in Limpopo. GroundUp has worked intently with Anton van Zyl, an investigative reporter and operator of the Limpopo Mirror, to expose NLC corruption. “The short article experienced features of data not obtainable in the public area, therefore increasing problem on inner Details protection breaches. The allegations in the media have been independently investigated,” Nene stated. “Nevertheless, employees responsible for divulging labeled info have nonetheless to get discovered”;
A 28 January 2018 write-up posted via the Dally Dispatch “citing several allegations within the Limpopo Mirror write-up released on ten December 2017 along with a new allegation associated with a previous personnel by the identify of Mzukisi Makatse. He was billed and summarily dismissed with the menace brought about to your organisation.”
A sixteen November 2018 write-up within the Lowvelder with regards to the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has described how, in spite of acquiring R27-million in lottery grants, the rehab has not been completed. “The Lowvelder short article contained classified information and facts regarding NLC plan, raising even further issues of inside info protection breaches,” Nene stated in her affidavit. “The prima facie proof with regards to these allegations did not warrant an impartial Investigation, however [it] highlighted the heightened data protection risks within the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.5-million grant to Denzhe Major Treatment, a hijacked NPO. Nene reported GroundUp experienced verified in its Tale that it had been based upon leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Marketing of Entry to Details) request for particulars about the challenge, she reported